Chapter 17 – Rectification Of Errors – TS Grewal 2022
Preparation of Suspense Account
Question 44
Q44. The accountant of a firm finds that the Trial Balance as on 31st March, 2012 is out by an excess debit of 283. He placed the amount in the Suspense Account. In the first week of April, 2022, he discovered the following errors. Pass the Journal entries necessary to rectify these errors and show the Suspense Account as it would appear at the end of the week. Have you any comment to make?
(i) Cash paid to Amar Nath, 75, was posted to the credit of Amar Singh’s Account as 57.
(ii) Discount allowed by Brijesh of 5 was not entered in the Cash Book but Brijesh stands debited correctly.
(iii) No entry was made for goods worth 40 taken away by proprietor for personal use.
(iv) 500 received from Jhaveri Bros. for interest on loan advanced to them were recorded in the Cash Book. But the entry was not posted in the Ledger.
(v) The total of Returns Outward Book was short by 100.
Solution
The accountant of a firm – Q44
